Retailers incur sizable revenue losses due to customers switching product identifiers (e.g., barcode labels) (UPC, EAN, JAN, RFID, EPC and/or equivalent numbering or other identifier on expensive items with labels representing barcodes (or SKU numbers or other relevant identifier(s)) of less expensive items, at points-of-sale and/or when an item is returned to a store, or to an e-tailer (online retailer) distribution center.
Advancements in technology and print quality of inexpensive printers used in the home have made it possible to reproduce barcode labels of “C” quality ratings or above that can be scanned (by a hand-held or flat-bed scanner) and read by a store's point-of-sale register.
A specific barcode can be reproduced in a multitude of ways. For example, an inexpensive product version of the same brand or a competing brand or entirely different item is purchased, and then the barcode is scanned (by a scanner typically used to reproduce photos to a digital image) and printed on a white label. A counterfeit barcode label also can be produced using software specifically designed to generate barcode labels from human readable numbers.
An individual simply walks into a store, places the counterfeit label on top of the existing label on a much more expensive product, and then walks up to the cash register and purchases the product at a significantly reduced price.
An unsuspecting store associate or an associate working during very busy peak holiday seasons is not likely to notice the switch or counterfeit transaction. As a result, the individual is able to obtain the product for less than the actual price, thereby resulting in a loss for the manufacturer/retailer.
The following example of this type of fraud, in which an individual buys an expensive vacuum cleaner and switches the UPC barcode with a UPC barcode label representing a less expensive brand, will illustrate the above problem and the features of the exemplary illustrative embodiments below:
The UPC barcode label on a Dyson vacuum cleaner, model “DC07 RootCyclone Animal” with a retail price of $499.00 is switched with a less expensive vacuum cleaner UPC barcode label representing a Dirt Devil Vision with Turbo Vacuum—088400, with a retail price of $99.99.
In this example, the individual defrauded the retailer out of $400.00. Retailers sustain millions of dollars in losses annually due to this type of fraudulent activity.
The instant invention provides a method/system to identify a product where a Universal Product Code (UPC), EAN Article Numbering Code (EAN), Japanese Article Numbering (JAN), and/or equivalent product numbering code(s), including RFID EPC labels, can be switched to misrepresent a product and enable a person to buy or gain possession of a product for less then the true product price/value.
The process to validate a UPC, EAN, JAN, and/or equivalent product numbering code(s), including RFID EPC, can include multiple layers, depending on the product value. In other words, more stringent validation may be desirable and provided on higher priced items or certain product categories that are more susceptible to fraud.
In accordance with one embodiment of the present invention, a method is provided for preventing losses by preventing fraudulent transactions relating to an item by first requiring a user to enter a first identifier and a second identifier of the item. Then, the first identifier is looked up in a database of suspect or counterfeit items. The transaction is allowed if the first identifier is not present in the database, or if the second identifier corresponds with a record associated with a first identifier present in the database. Alternatively, the transaction is denied if the first identifier is present in the database and the second identifier does not correspond with a record associated with the first identifier present in the database. It should be noted that the first identifier may be, for example, a UPC, EAN, JAN, RFID, EPC and/or equivalent product numbering code(s). Additionally, the second identifier may be, for example, a brand, model name, model number, characters/letters on packaging, product date code, lot number, etc.
In accordance with another embodiment of the present invention, a method is provided for preventing losses by preventing fraudulent transactions relating to an item by first requiring a user to enter a first identifier and a plurality of second identifiers of the item. Then, the first identifier is looked up in a database of suspect or counterfeit labels or item identifiers. The transaction is allowed if the first identifier is not present in the database, or if the entire plurality of second identifiers correspond with a record associated with a first identifier present in the database. Alternatively, the transaction is denied if the first identifier is present in the database and any second identifier in the plurality of second identifiers does not correspond with a record associated with the first identifier present in the database. It should be noted that the first identifier may be, for example, a UPC, EAN, JAN, RFID, EPC and/or equivalent product numbering code(s). Additionally, the plurality of second identifiers may comprise, for example, a brand, model name, model number, etc. It should also be noted that a transaction may be permitted if only a certain number of second identifiers in the plurality of second identifiers do not match a record in the database, allowing a transaction on an item that has a close, though not exact, match.
In accordance with still another embodiment of the present invention, a system is provided for preventing losses at a transaction point by preventing fraudulent transactions relating to an item. An input device (e.g., scanner, RFID reader, etc.) allows a user to input a first identifier and a second identifier of the item. A searching routine looks up the first identifier in a database of suspect or counterfeit items. A gatekeeper switch allows the transaction if the first identifier is not present in the database, or if present, if the second identifier corresponds with a record associated with the first identifier present in the database. Alternatively, the gatekeeper switch denies the transaction if the first identifier is present in the database and the second identifier does not correspond with a record associated with the first identifier present in the database. It should be noted that the gatekeeper switch may consist of a software routine, a hardware component, or any method or device capable of directing the system to a certain step depending on whether the first identifier was found in the database. It also should be noted that the first identifier may be, for example, a UPC, EAN, JAN, RFID, EPC and/or equivalent product numbering code(s). Additionally, the second identifier may be, for example, a brand, model name, model number, etc.
In accordance with still another embodiment of the present invention, a system is provided for preventing losses at a transaction point by preventing fraudulent transactions relating to an item. An input device allows a user to input a first identifier and a plurality of second identifiers of the item. A searching routine looks up the first identifier in a database of suspect or counterfeit items. A gatekeeper switch allows the transaction if the first identifier is not present in the database, or if the plurality of second identifiers correspond with a record associated with the first identifier present in the database. Alternatively, the gatekeeper switch denies the transaction if the first identifier is present in the database and any second identifier in the plurality of second identifiers does not correspond with a record associated with the first identifier present in the database. It should be noted that the gatekeeper switch may consist of a software routine, a hardware component, or any method or device capable of directing the system to a certain step depending on whether the first identifier was found in the database. It also should be noted that the first identifier may be, for example, a UPC, EAN, JAN, RFID, EPC and/or equivalent product numbering code(s). Additionally, the plurality of second identifiers may comprise, for example, a brand, model name, model number, etc. It should also be noted that a transaction may be permitted if only a certain number of second identifiers in the plurality of second identifiers do not match a record in the database, allowing a transaction on an item that has a close, though not exact, match.